For the time, the average Nigerian’s mind has been programmed to see and berate over problems rather than see an opportunity amid prevailing circumstances. And if we must make substantial progress in our everyday life, then we must learn to think outside the box and reprogram our minds to see how we can benefit from anything at any time, and in any circumstances. This is the true definition of wisdom- your ability to make the most of anything at any time and in any circumstance.
Like the saying goes “Can anything good come out of Nazareth?” In this case, for you, it is affirmative when it comes to profiting greatly and making the most of this current naira depreciation. All you have to do is to open your heart to unlearn and relearn your definition of problems until you begin to see every problem as an opportunity and begin to think about how you can profit from them. Now let’s talk about the Naira falling so low, and how you as a Nigerian or a business entity can cash in greatly.
In this article you will get to know the core difference between Naira depreciation and devaluation, and also how to position yourself to be among the gainers from what many have seen as a woe. Just read on.
What's in this guide?
What is currency depreciation?
When a currency depreciates, it loses value against other nations’ currencies. Economic factors, interest rate differences, political unrest, or investor uncertainty, are a few causes of currency devaluation. Market forces are the name for these elements.
The central bank’s decision to allow the Naira to float has caused the Naira to decline in value recently. The current value of the naira with the dollar is approximately N820.
The strong dollar demand for paying for school expenses, medical expenses, travel, importing inputs, and other commodities was a major factor in the Naira’s severe losses. Demand and supply are common economic concepts. High demand for the dollar will always result in Naira depreciation.
Differences between currency depreciation and devaluation.
In a fixed exchange system, Nations deliberately lower their exchange rates for several reasons. This is called currency devaluation. But when it comes to depreciation, it is a free fall caused by market forces, in a floating exchange system.
Before this, Nigeria purposefully devalued the Naira to entice international investors among other goals. But as of right now, the narrative has changed. Due to the naira floating in June of this year, the CBN no longer has authority over the exchange rate. In this vein, we might conclude that a devaluation is a depreciation caused by a central bank’s adjustment of a fixed exchange rate goal, whereas a depreciation is a downward movement in a currency caused by market forces.
4 Ways businesses and individuals can profit from naira depreciation
1. Get remote jobs from countries with high exchange rates
For the average job seeker, or those with current Jobs, one of the wisest things to do to profit greatly from this depreciation is to pursue remote foreign jobs with high exchange rates. Let’s take the dollar as a case study. Since a dollar is N791 in the forex market, one can leverage it, and get a remote job from the USA.
Imagine you’re being paid a thousand dollars per month. That’s the equivalent of almost N800,000. So rather than allow yourself as Nigeria, especially one with a special skill that has a remote alternative, to sink with the current economic situation, if you get a remote job, you will be among those who have become immune to the depreciation. And in most cases, you might land more than a job. And if that is your case, then you’re already a millionaire while others are struggling to make ends meet.
2. Go into the exportation business
There is no better time than now to be involved in the exportation business, be it raw materials, cash crops, or foodstuff. Whatever it is you can lay hands on for export, automatically becomes a Gold mine.
All you have to do is to get the know-how on how to start an exportation business and decide on the material or product to export.
The simple idea is that you will be paid in Dollars, and upon conversion, it becomes a huge amount of money in Naira. This will become a huge opportunity for you to live above this prevalent economic situation we have found ourselves.
3. Go into the production of locally made goods and compete with the foreign-made ones
Yet again, the best time to compete with foreign-made goods is now. Since the Naira depreciation has had an untold effect on the cost of imports, resulting in inflation for export goods, going into production of these same goods becomes a good idea.
With the locally made goods cheaper, and with almost the same quality, consumers may opt for the cheapest, thereby resulting in high demand for the locally made goods.
4. Secure foreign base clients for your business
As a business entity in Nigeria, you should rather seek to get foreign clients who will pay in foreign currencies. Businesses such as writing agencies, marketing agencies, affiliate marketers, and other servicing firms should be able to see the Naira depreciation as an opportunity and concentrate on securing contracts with foreign businesses.
And since the exchange rate is higher, especially for those that pay in dollars, you see your Business thrive despite the economic situation.
Conclusion
In today’s world, your ability to see a blessing out of any quagmire and pursue it becomes your vantage point in life.
While others seem to be confused and disheartened due to the hardship brought in by the Naira depreciation, others are being enriched by it. Stop being in the general class of those who only see problems, rather learn and train your mind to see opportunity in every chaos. The fact is the Naira May not appreciate anytime soon. This is mainly because of the high dependence on the dollar. So instead of waiting for the tide to ease, which may never become a reality, we must quickly learn to adapt ourselves to it, to profit maximumly from it.
